How to Write a Collection Letter for Consultant Services

By Lanee’ Blunt
Write a collection letter--

Consultants shy away from using collection letters. When someone owes you money for your service business and doesn’t want to pay in response of your regular billing, then you may begin writing letters of notification. The first stage in the collection process for your service business is a letter of notification. In most cases, a client will give you no trouble in making a payment, but occasionally they won’t pay and you should send a collection letter.

Collection letters are not just for large corporations, if it is written correctly, it will be to your advantage to use. Send copies of past bills. You can start in the early stages of the process by sending repeated bills to the client.  On the bills stamp reminder to indicate that you are giving them the opportunity to pay you. Write a polite letter urging the recipient to make payment on the outstanding bill.

Start the collection letter with a double space under the salutation.  In this paragraph list the overdue balance that is owed to you, the date, and invoice number. Write that you have not received payment for services that you performed. The most common request is that the client has lost the invoice.

Start your second paragraph double space in between the first paragraph informing the client in a respectful tone assuming there has been some mistake resulting from lack of payment. For example, “I felt sure that your payment would be here by now. Please send the payment by mail so that you can continue to receive the consulting services you’ve been receiving.” The letter should not sound too harsh because there is another stage of “severity of letters” that follows the notification letter.

Close the letter. With a friendly but firm tone that the payment should be mailed before you can continue any future work for the client. If the payment has already been mailed please ignore the letter.

Accounting Best Practices; Steven M. Bragg, 2010


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